What is a comparative market analysis (CMA)?

A comparative market analysis (CMA) is an evaluation that assesses a property by comparing it to similar properties that have recently sold, are currently on the market, or were listed but did not sell in a specific area. This process helps real estate professionals estimate the market value of a property, taking into consideration various factors like location, size, condition, and features of the comparable properties.

By analyzing these similarities and differences, agents can give a more accurate pricing recommendation to sellers or buyers based on current market trends and behaviors. This method is essential for achieving fair pricing and effective negotiations in real estate transactions.

The other choices do not accurately represent what a CMA entails. Energy efficiency ratings focus on a property’s environmental impact rather than its market value. Tools for home renovations pertain to physical property changes and do not assess market conditions. Marketing methods are concerned with promoting properties for sale, which is a different aspect of real estate practice that does not involve comparative valuations.